Bookkeeping: Adding Back to iShares Barclays 20+ Year Treasury Bond (TLT) Short

By IBT Staff Reporter On 04/05/10 AT 11:23 AM

About the only thing that can be shorted nowadays with success are US Bonds. I covered almost the entire short of iShares Barclays 20+ Year Treasury Bond (TLT) on March 24th as this ETF has been range bound for months on end and was at the lower end of the range. Today, as the chart below show a triple bottom was broken (or bond yields have broken out - however you wish to view it) so I will treat it as if a stock is breaking out and get back our position, but in larger scale.

We'll jump back in with a 2% allocation on the short side... which is really a bullish call on the broader market so it's only short in technical nature. Generally this is slow money so if one wanted to press their bets TBT (which is the Ultrashort of the bonds) is the other option.

Keep in mind there are 10 and 30 year bond auctions later this week; if there are any 'digestion' problems this should also help this position.